QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Quarterly Period Ended June 30, 2020 | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices) | |||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company | |||
Page | ||
PART I FINANCIAL INFORMATION | ||
ITEM 1. | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
PART II OTHER INFORMATION | ||
ITEM 1. | ||
ITEM 1A. | ||
ITEM 2. | ||
ITEM 6. | ||
Three months ended | Six months ended | ||||||||||||
In millions, except per-share data | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||
Net sales | $ | $ | $ | $ | |||||||||
Cost of goods sold | |||||||||||||
Gross profit | |||||||||||||
Selling, general and administrative expenses | |||||||||||||
Research and development expenses | |||||||||||||
Operating income | |||||||||||||
Other (income) expense: | |||||||||||||
Loss (gain) on sale of businesses | ( | ) | |||||||||||
Net interest expense | |||||||||||||
Other (income) expense | ( | ) | ( | ) | ( | ) | |||||||
Income from continuing operations before income taxes | |||||||||||||
Provision for income taxes | |||||||||||||
Net income from continuing operations | |||||||||||||
Loss from discontinued operations, net of tax | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Net income | $ | $ | $ | $ | |||||||||
Comprehensive income, net of tax | |||||||||||||
Net income | $ | $ | $ | $ | |||||||||
Changes in cumulative translation adjustment | ( | ) | ( | ) | ( | ) | |||||||
Changes in market value of derivative financial instruments, net of tax | ( | ) | ( | ) | |||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||
Earnings (loss) per ordinary share | |||||||||||||
Basic | |||||||||||||
Continuing operations | $ | $ | $ | $ | |||||||||
Discontinued operations | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Basic earnings per ordinary share | $ | $ | $ | $ | |||||||||
Diluted | |||||||||||||
Continuing operations | $ | $ | $ | $ | |||||||||
Discontinued operations | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Diluted earnings per ordinary share | $ | $ | $ | $ | |||||||||
Weighted average ordinary shares outstanding | |||||||||||||
Basic | |||||||||||||
Diluted | |||||||||||||
June 30, 2020 | December 31, 2019 | |||||
In millions, except per-share data | ||||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | $ | ||||
Accounts receivable, net of allowances of $8.8 and $10.3, respectively | ||||||
Inventories | ||||||
Other current assets | ||||||
Total current assets | ||||||
Property, plant and equipment, net | ||||||
Other assets | ||||||
Goodwill | ||||||
Intangibles, net | ||||||
Other non-current assets | ||||||
Total other assets | ||||||
Total assets | $ | $ | ||||
Liabilities and Equity | ||||||
Current liabilities | ||||||
Accounts payable | $ | $ | ||||
Employee compensation and benefits | ||||||
Other current liabilities | ||||||
Total current liabilities | ||||||
Other liabilities | ||||||
Long-term debt | ||||||
Pension and other post-retirement compensation and benefits | ||||||
Deferred tax liabilities | ||||||
Other non-current liabilities | ||||||
Total liabilities | ||||||
Equity | ||||||
Ordinary shares $0.01 par value, 426.0 authorized, 165.9 and 168.3 issued at June 30, 2020 and December 31, 2019, respectively | ||||||
Additional paid-in capital | ||||||
Retained earnings | ||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ||
Total equity | ||||||
Total liabilities and equity | $ | $ | ||||
Six months ended | ||||||
In millions | June 30, 2020 | June 30, 2019 | ||||
Operating activities | ||||||
Net income | $ | $ | ||||
Loss from discontinued operations, net of tax | ||||||
Adjustments to reconcile net income from continuing operations to net cash provided by (used for) operating activities of continuing operations | ||||||
Equity income of unconsolidated subsidiaries | ( | ) | ( | ) | ||
Depreciation | ||||||
Amortization | ||||||
Deferred income taxes | ( | ) | ||||
Loss (gain) on sale of businesses | ( | ) | ||||
Share-based compensation | ||||||
Asset impairment | ||||||
Pension settlement gain | ( | ) | ||||
Pension and other post-retirement plan contribution | ( | ) | ||||
Changes in assets and liabilities, net of effects of business acquisitions | ||||||
Accounts receivable | ||||||
Inventories | ( | ) | ||||
Other current assets | ( | ) | ( | ) | ||
Accounts payable | ( | ) | ( | ) | ||
Employee compensation and benefits | ( | ) | ||||
Other current liabilities | ||||||
Other non-current assets and liabilities | ( | ) | ||||
Net cash provided by operating activities of continuing operations | ||||||
Net cash used for operating activities of discontinued operations | ( | ) | ( | ) | ||
Net cash provided by operating activities | ||||||
Investing activities | ||||||
Capital expenditures | ( | ) | ( | ) | ||
Proceeds from sale of property and equipment | ||||||
Proceeds from the sale of businesses, net | ||||||
Acquisitions, net of cash acquired | ( | ) | ( | ) | ||
Other | ( | ) | ||||
Net cash used for investing activities | ( | ) | ( | ) | ||
Financing activities | ||||||
Net (repayments) receipts of commercial paper and revolving long-term debt | ( | ) | ||||
Proceeds from long-term debt | ||||||
Debt issuance costs | ( | ) | ||||
Shares issued to employees, net of shares withheld | ||||||
Repurchases of ordinary shares | ( | ) | ( | ) | ||
Dividends paid | ( | ) | ( | ) | ||
Net cash (used for) provided by financing activities | ( | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | ( | ) | ||||
Change in cash and cash equivalents | ||||||
Cash and cash equivalents, beginning of period | ||||||
Cash and cash equivalents, end of period | $ | $ | ||||
In millions | Ordinary shares | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Total | |||||||||||||
Number | Amount | |||||||||||||||||
Balance - December 31, 2019 | $ | $ | $ | $ | ( | ) | $ | |||||||||||
Net income | — | — | — | — | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | ||||||||||||||
Dividends declared, $0.19 per share | — | — | — | ( | ) | — | ( | ) | ||||||||||
Share repurchases | ( | ) | — | ( | ) | — | — | ( | ) | |||||||||
Exercise of options, net of shares tendered for payment | — | — | — | |||||||||||||||
Issuance of restricted shares, net of cancellations | — | — | — | — | ||||||||||||||
Shares surrendered by employees to pay taxes | ( | ) | — | ( | ) | — | — | ( | ) | |||||||||
Share-based compensation | — | — | — | — | ||||||||||||||
Balance - March 31, 2020 | $ | $ | $ | $ | ( | ) | $ | |||||||||||
Net income | — | — | — | — | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ||||||||||||||
Dividends declared, $0.19 per share | — | — | — | ( | ) | — | ( | ) | ||||||||||
Exercise of options, net of shares tendered for payment | — | — | — | |||||||||||||||
Issuance of restricted shares, net of cancellations | — | — | — | |||||||||||||||
Shares surrendered by employees to pay taxes | — | ( | ) | — | — | ( | ) | |||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||
Balance - June 30, 2020 | $ | $ | $ | $ | ( | ) | $ | |||||||||||
In millions | Ordinary shares | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Total | |||||||||||||
Number | Amount | |||||||||||||||||
Balance - December 31, 2018 | $ | $ | $ | $ | ( | ) | $ | |||||||||||
Net income | — | — | — | — | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | ||||||||||||||
Dividends declared, $0.18 per share | — | — | — | ( | ) | — | ( | ) | ||||||||||
Exercise of options, net of shares tendered for payment | — | — | — | |||||||||||||||
Issuance of restricted shares, net of cancellations | — | — | — | — | ||||||||||||||
Shares surrendered by employees to pay taxes | — | — | ( | ) | — | — | ( | ) | ||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||
Balance - March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | |||||||||||
Net income | — | — | — | — | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | ( | ) | ( | ) | ||||||||||
Dividends declared, $0.18 per share | — | — | — | ( | ) | — | ( | ) | ||||||||||
Share repurchases | ( | ) | — | ( | ) | — | — | ( | ) | |||||||||
Exercise of options, net of shares tendered for payment | — | — | — | |||||||||||||||
Issuance of restricted shares, net of cancellations | — | — | — | |||||||||||||||
Shares surrendered by employees to pay taxes | ( | ) | — | ( | ) | — | — | ( | ) | |||||||||
Share-based compensation | — | — | — | — | ||||||||||||||
Balance - June 30, 2019 | $ | $ | $ | $ | ( | ) | $ | |||||||||||
In millions | June 30, 2020 | ||
Beginning balance | $ | ||
Bad debt expense | ( | ) | |
Write-offs, net of recoveries | ( | ) | |
Other (1) | ( | ) | |
Ending balance | $ | ||
(1) Other amounts are primarily the effects of changes in currency translations and the impact of allowance for credits. | |||
Three months ended | Six months ended | ||||||||||||
In millions | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||
U.S. | $ | $ | $ | $ | |||||||||
Western Europe | |||||||||||||
Developing (1) | |||||||||||||
Other Developed (2) | |||||||||||||
Consolidated net sales | $ | $ | $ | $ | |||||||||
(1) Developing includes China, Eastern Europe, Latin America, the Middle East and Southeast Asia. | |||||||||||||
(2) Other Developed includes Australia, Canada and Japan. | |||||||||||||
Three months ended | Six months ended | ||||||||||||
In millions | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||
Residential | $ | $ | $ | $ | |||||||||
Commercial | |||||||||||||
Industrial | |||||||||||||
Consolidated net sales | $ | $ | $ | $ | |||||||||
In millions | June 30, 2020 | December 31, 2019 | $ Change | % Change | ||||||||
Contract assets | $ | $ | $ | % | ||||||||
Contract liabilities | ( | ) | ( | )% | ||||||||
Net contract assets | $ | $ | $ | % | ||||||||
4. | Share Plans |
Three months ended | Six months ended | ||||||||||||
In millions | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||
Restricted stock units | $ | $ | $ | $ | |||||||||
Stock options | |||||||||||||
Performance share units | |||||||||||||
Total share-based compensation expense | $ | $ | $ | $ | |||||||||
2020 Annual Grant | ||
Risk-free interest rate | % | |
Expected dividend yield | % | |
Expected share price volatility | % | |
Expected term (years) | ||
5. | Restructuring |
Three months ended | Six months ended | ||||||||||||
In millions | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||
Severance and related costs | $ | $ | $ | $ | |||||||||
Other | |||||||||||||
Total restructuring costs | $ | $ | $ | $ | |||||||||
Three months ended | Six months ended | ||||||||||||
In millions | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||
Consumer Solutions | $ | $ | $ | $ | |||||||||
Industrial & Flow Technologies | ( | ) | |||||||||||
Other | |||||||||||||
Consolidated | $ | $ | $ | $ | |||||||||
In millions | June 30, 2020 | ||
Beginning balance | $ | ||
Costs incurred | |||
Cash payments and other | ( | ) | |
Ending balance | $ | ||
6. | Earnings Per Share |
Three months ended | Six months ended | ||||||||||||
In millions, except per-share data | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||
Net income | $ | $ | $ | $ | |||||||||
Net income from continuing operations | $ | $ | $ | $ | |||||||||
Weighted average ordinary shares outstanding | |||||||||||||
Basic | |||||||||||||
Dilutive impact of stock options, restricted stock units and performance share units | |||||||||||||
Diluted | |||||||||||||
Earnings (loss) per ordinary share | |||||||||||||
Basic | |||||||||||||
Continuing operations | $ | $ | $ | $ | |||||||||
Discontinued operations | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Basic earnings per ordinary share | $ | $ | $ | $ | |||||||||
Diluted | |||||||||||||
Continuing operations | $ | $ | $ | $ | |||||||||
Discontinued operations | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Diluted earnings per ordinary share | $ | $ | $ | $ | |||||||||
Anti-dilutive stock options excluded from the calculation of diluted earnings per share | |||||||||||||
In millions | June 30, 2020 | December 31, 2019 | ||||
Inventories | ||||||
Raw materials and supplies | $ | $ | ||||
Work-in-process | ||||||
Finished goods | ||||||
Total inventories | $ | $ | ||||
Other current assets | ||||||
Cost in excess of billings | $ | $ | ||||
Prepaid expenses | ||||||
Prepaid income taxes | ||||||
Other current assets | ||||||
Total other current assets | $ | $ | ||||
Property, plant and equipment, net | ||||||
Land and land improvements | $ | $ | ||||
Buildings and leasehold improvements | ||||||
Machinery and equipment | ||||||
Capitalized software | ||||||
Construction in progress | ||||||
Total property, plant and equipment | ||||||
Accumulated depreciation and amortization | ||||||
Total property, plant and equipment, net | $ | $ | ||||
Other non-current assets | ||||||
Right-of-use lease assets | $ | $ | ||||
Deferred income taxes | ||||||
Deferred compensation plan assets | ||||||
Foreign currency contract assets | ||||||
Other non-current assets | ||||||
Total other non-current assets | $ | $ | ||||
Other current liabilities | ||||||
Dividends payable | $ | $ | ||||
Accrued warranty | ||||||
Accrued rebates and incentives | ||||||
Billings in excess of cost | ||||||
Current lease liability | ||||||
Income taxes payable | ||||||
Accrued restructuring | ||||||
Other current liabilities | ||||||
Total other current liabilities | $ | $ | ||||
Other non-current liabilities | ||||||
Long-term lease liability | $ | $ | ||||
Income taxes payable | ||||||
Self-insurance liabilities | ||||||
Deferred compensation plan liabilities | ||||||
Foreign currency contract liabilities | ||||||
Other non-current liabilities | ||||||
Total other non-current liabilities | $ | $ | ||||
8. | Goodwill and Other Identifiable Intangible Assets |
In millions | December 31, 2019 | Purchase Accounting Adjustments | Acquisitions | Foreign currency translation/other | June 30, 2020 | ||||||||||
Consumer Solutions | $ | $ | $ | $ | $ | ||||||||||
Industrial & Flow Technologies | — | — | |||||||||||||
Total goodwill | $ | $ | $ | $ | $ | ||||||||||
June 30, 2020 | December 31, 2019 | ||||||||||||||||||
In millions | Cost | Accumulated amortization | Net | Cost | Accumulated amortization | Net | |||||||||||||
Definite-life intangibles | |||||||||||||||||||
Customer relationships | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||
Proprietary technology and patents | ( | ) | ( | ) | |||||||||||||||
Total definite-life intangibles | ( | ) | ( | ) | |||||||||||||||
Indefinite-life intangibles | |||||||||||||||||||
Trade names | — | — | |||||||||||||||||
Total intangibles | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||
Q3-Q4 | ||||||||||||||||||
In millions | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | ||||||||||||
Estimated amortization expense | $ | $ | $ | $ | $ | $ | ||||||||||||
9. | Debt |
In millions | Average interest rate as of June 30, 2020 | Maturity Year | June 30, 2020 | December 31, 2019 | ||||
Commercial paper | N/A | 2023 | $ | $ | ||||
Revolving credit facilities | 2023 | |||||||
Term loans | 2023 | |||||||
Senior notes - fixed rate (1) | 2020 | |||||||
Senior notes - fixed rate (1) | 2021 | |||||||
Senior notes - fixed rate (1) | 2022 | |||||||
Senior notes - fixed rate (1) | 2025 | |||||||
Senior notes - fixed rate (1) | 2029 | |||||||
Unamortized debt issuance costs and discounts | N/A | N/A | ( | ) | ( | ) | ||
Total debt | $ | $ | ||||||
(1) Senior notes are guaranteed as to payment by Pentair plc. | ||||||||
Q3-Q4 | ||||||||||||||||||||||||
In millions | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | ||||||||||||||||
Contractual debt obligation maturities | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
10. | Derivatives and Financial Instruments |
Level 1: | Valuation is based on observable inputs such as quoted market prices (unadjusted) for identical assets or liabilities in active markets. | |
Level 2: | Valuation is based on inputs such as quoted market prices for similar assets or liabilities in active markets or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | |
Level 3: | Valuation is based upon other unobservable inputs that are significant to the fair value measurement. | |
• | short-term financial instruments (cash and cash equivalents, accounts and notes receivable, accounts and notes payable and variable-rate debt) — recorded amount approximates fair value because of the short maturity period; |
• | long-term fixed-rate debt, including current maturities — fair value is based on market quotes available for issuance of debt with similar terms, which are inputs that are classified as Level 2 in the valuation hierarchy defined by the accounting guidance; |
• | foreign currency contract agreements — fair values are determined through the use of models that consider various assumptions, including time value, yield curves, as well as other relevant economic measures, which are inputs that are classified as Level 2 in the valuation hierarchy defined by the accounting guidance; and |
• | deferred compensation plan assets (mutual funds, common/collective trusts and cash equivalents for payment of certain non-qualified benefits for retired, terminated and active employees) — fair value of mutual funds and cash equivalents are based on quoted market prices in active markets that are classified as Level 1 in the valuation hierarchy defined by the accounting guidance; fair value of common/collective trusts are valued at net asset value (“NAV”), which is based on the fair value of the underlying securities owned by the fund and divided by the number of shares outstanding. |
June 30, 2020 | December 31, 2019 | ||||||||||||
In millions | Recorded Amount | Fair Value | Recorded Amount | Fair Value | |||||||||
Variable rate debt | $ | $ | $ | $ | |||||||||
Fixed rate debt | |||||||||||||
Total debt | $ | $ | $ | $ | |||||||||
June 30, 2020 | |||||||||||||||
In millions | Level 1 | Level 2 | Level 3 | NAV | Total | ||||||||||
Recurring fair value measurements | |||||||||||||||
Foreign currency contract assets | $ | $ | $ | $ | $ | ||||||||||
Deferred compensation plan assets | |||||||||||||||
Total recurring fair value measurements | $ | $ | $ | $ | $ | ||||||||||
December 31, 2019 | |||||||||||||||
In millions | Level 1 | Level 2 | Level 3 | NAV | Total | ||||||||||
Recurring fair value measurements | |||||||||||||||
Foreign currency contract assets | $ | $ | $ | $ | $ | ||||||||||
Foreign currency contract liabilities | ( | ) | ( | ) | |||||||||||
Deferred compensation plan assets | |||||||||||||||
Total recurring fair value measurements | $ | $ | ( | ) | $ | $ | $ | ||||||||
Nonrecurring fair value measurements (1) | |||||||||||||||
(1) | During the year ended December 31, 2019, we recorded impairment charges for cost method investments in the amount of $ |
11. |
12. | Benefit Plans |
Three months ended | Six months ended | ||||||||||||
In millions | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||
Service cost | $ | $ | $ | $ | |||||||||
Interest cost | |||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Plan settlement gain (1) | ( | ) | ( | ) | |||||||||
Net periodic benefit cost | $ | $ | ( | ) | $ | $ | ( | ) | |||||
(1) In 2019, we received all required government approvals to terminate the Pentair Salaried Plan (the “Salaried Plan”) and entered into an agreement with an insurance company to purchase from us, through an annuity contract, our remaining obligations under the Salaried Plan. For the six months ended June 30, 2019, we contributed $10.7 million to the Salaried Plan as part of the process to settle our obligations. As a result of these actions, a non-cash pre-tax settlement gain of $12.2 million was recorded for the three and six months ended June 30, 2019. | |||||||||||||
13. | Shareholders’ Equity |
14. | Segment Information |
• | Consumer Solutions — This segment designs, manufactures and sells energy-efficient residential and commercial pool equipment and accessories, and commercial and residential water treatment products and systems. Residential and commercial pool equipment and accessories include pumps, filters, heaters, lights, automatic controls, automatic cleaners, maintenance equipment and pool accessories. Water treatment products and systems include pressure tanks, control valves, activated carbon products, conventional filtration products, and point-of-entry and point-of-use systems. Applications for our pool business’s products include residential and commercial pool maintenance, repair, renovation, service and construction. Our water treatment products and systems are used in residential whole home water filtration, drinking water filtration and water softening solutions in addition to commercial total water management and filtration in foodservice operations. The primary focus of this segment is business-to-consumer. |
• | Industrial & Flow Technologies — This segment manufactures and sells a variety of fluid treatment and pump products and systems, including pressure vessels, gas recovery solutions, membrane bioreactors, wastewater reuse systems and advanced membrane filtration, separation systems, water disposal pumps, water supply pumps, fluid transfer pumps, turbine pumps, solid handling pumps, and agricultural spray nozzles, while serving the global residential, commercial and industrial markets. These products and systems are used in a range of applications, fluid delivery, ion exchange, desalination, food and beverage, separation technologies for the oil and gas industry, residential and municipal wells, water treatment, wastewater solids handling, pressure boosting, circulation and transfer, fire suppression, flood control, agricultural irrigation and crop spray. The primary focus of this segment is business-to-business. |
Three months ended | Six months ended | ||||||||||||
In millions | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||
Net sales | |||||||||||||
Consumer Solutions | $ | $ | $ | $ | |||||||||
Industrial & Flow Technologies | |||||||||||||
Other | |||||||||||||
Consolidated | $ | $ | $ | $ | |||||||||
Segment income (loss) | |||||||||||||
Consumer Solutions | $ | $ | $ | $ | |||||||||
Industrial & Flow Technologies | |||||||||||||
Other | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Consolidated | $ | $ | $ | $ | |||||||||
Three months ended | Six months ended | ||||||||||||
In millions | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||
Segment income | $ | $ | $ | $ | |||||||||
Deal-related costs and expenses | ( | ) | ( | ) | |||||||||
Inventory step-up | ( | ) | ( | ) | |||||||||
Restructuring and other | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Intangible amortization | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Pension settlement gain | |||||||||||||
Asset impairment | ( | ) | ( | ) | |||||||||
(Loss) gain on sale of businesses | ( | ) | ( | ) | ( | ) | |||||||
COVID-19 related costs and expenses | ( | ) | ( | ) | |||||||||
Net interest expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Other expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Income from continuing operations before income taxes | $ | $ | $ | $ | |||||||||
15. | Commitments and Contingencies |
In millions | June 30, 2020 | ||
Beginning balance | $ | ||
Service and product warranty provision | |||
Payments | ( | ) | |
Ending balance | $ | ||
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Consumer Solutions — This segment designs, manufactures and sells energy-efficient residential and commercial pool equipment and accessories, and commercial and residential water treatment products and systems. Residential and commercial pool equipment and accessories include pumps, filters, heaters, lights, automatic controls, automatic cleaners, maintenance equipment and pool accessories. Water treatment products and systems include pressure tanks, control valves, activated carbon products, conventional filtration products, and point-of-entry and point-of-use systems. Applications for our pool business’s products include residential and commercial pool maintenance, repair, renovation, service and construction. Our water treatment products and systems are used in residential whole home water filtration, drinking water filtration and water softening solutions in addition to commercial total water management and filtration in foodservice operations. The primary focus of this segment is business-to-consumer. |
• | Industrial & Flow Technologies — This segment manufactures and sells a variety of fluid treatment and pump products and systems, including pressure vessels, gas recovery solutions, membrane bioreactors, wastewater reuse systems and advanced membrane filtration, separation systems, water disposal pumps, water supply pumps, fluid transfer pumps, turbine pumps, solid handling pumps, and agricultural spray nozzles, while serving the global residential, commercial and industrial markets. These products and systems are used in a range of applications, fluid delivery, ion exchange, desalination, food and beverage, separation technologies for the oil and gas industry, residential and municipal wells, water treatment, wastewater solids handling, pressure boosting, circulation and |
• | There are many uncertainties regarding the COVID-19 pandemic, including the anticipated duration and severity of the pandemic and the extent of worldwide social, political and economic disruption it may continue to cause. The broader implications of the COVID-19 pandemic on our business, financial condition, results of operations and cash flows cannot be determined at this time, and ultimately will be affected by a number of evolving factors including the length of time that the pandemic continues, its effect on the demand for our products and services, the supply chain, and our manufacturing capacity, as well as the impact of governmental regulations imposed in response to the pandemic. See further discussion above under “COVID-19 Pandemic” for key trends and uncertainties with regard to the COVID-19 pandemic. |
• | During 2019 and the first half of 2020, we executed certain business restructuring initiatives unrelated to the COVID-19 pandemic aimed at reducing our fixed cost structure and realigning our business. We expect these actions will contribute to margin growth in the second half of 2020. |
• | We have identified specific product and geographic market opportunities that we find attractive and continue to pursue, both within and outside the U.S. We are reinforcing that our businesses more effectively address these opportunities through research and development and additional sales and marketing resources. Unless we successfully penetrate these markets, our core sales growth will likely be limited or may decline. |
• | We have experienced material and other cost inflation. We strive for productivity improvements, and we implement increases in selling prices to help mitigate this inflation. We expect the current economic environment will result in continuing price volatility for many of our raw materials, and we are uncertain as to the timing and impact of these market changes. |
• | Managing our business through the COVID-19 pandemic, with a focus on: |
◦ | Protecting our employees, customers and our businesses; |
◦ | Optimizing our free cash flow and liquidity; and |
◦ | Delivering the best financial results possible in the near-term while staying focused on longer-term strategies. |
• | Continued focus on accelerating Pentair Integrated Management System (“PIMS”); |
• | Delivering our growth priorities through new products and global and market expansion, specifically in the areas of pool and residential and commercial filtration solutions; |
• | Optimizing our technological capabilities to increasingly generate innovative new products and advance digital transformation; and |
• | Building a high performance growth culture and delivering on our commitments while living our Win Right values. |
Three months ended | |||||||||||
In millions | June 30, 2020 | June 30, 2019 | $ Change | % / Point Change | |||||||
Net sales | $ | 713.3 | $ | 799.5 | $ | (86.2 | ) | (10.8 | )% | ||
Cost of goods sold | 468.2 | 512.8 | (44.6 | ) | (8.7 | )% | |||||
Gross profit | 245.1 | 286.7 | (41.6 | ) | (14.5 | )% | |||||
% of net sales | 34.4 | % | 35.9 | % | (1.5 | ) pts | |||||
Selling, general and administrative | 116.7 | 132.2 | (15.5 | ) | (11.7 | )% | |||||
% of net sales | 16.4 | % | 16.5 | % | (0.1 | ) pts | |||||
Research and development | 17.3 | 20.7 | (3.4 | ) | (16.4 | )% | |||||
% of net sales | 2.4 | % | 2.6 | % | (0.2 | ) pts | |||||
Operating income | 111.1 | 133.8 | (22.7 | ) | (17.0 | )% | |||||
% of net sales | 15.6 | % | 16.7 | % | (1.1 | ) pts | |||||
Loss on sale of businesses | 0.1 | 0.1 | — | N.M. | |||||||
Other income | (0.3 | ) | (12.9 | ) | 12.6 | N.M. | |||||
Net interest expense | 7.7 | 9.4 | (1.7 | ) | (18.1 | )% | |||||
Income from continuing operations before income taxes | 103.6 | 137.2 | (33.6 | ) | (24.5 | )% | |||||
Provision for income taxes | 29.8 | 22.1 | 7.7 | 34.8 | % | ||||||
Effective tax rate | 28.8 | % | 16.1 | % | 12.7 | pts | |||||
Six months ended | |||||||||||
In millions | June 30, 2020 | June 30, 2019 | $ Change | % / Point Change | |||||||
Net sales | $ | 1,423.3 | $ | 1,488.4 | $ | (65.1 | ) | (4.4 | )% | ||
Cost of goods sold | 926.6 | 966.1 | (39.5 | ) | (4.1 | )% | |||||
Gross profit | 496.7 | 522.3 | (25.6 | ) | (4.9 | )% | |||||
% of net sales | 34.9 | % | 35.1 | % | (0.2 | ) pts | |||||
Selling, general and administrative expenses | 248.6 | 279.5 | (30.9 | ) | (11.1 | )% | |||||
% of net sales | 17.5 | % | 18.8 | % | (1.3 | ) pts | |||||
Research and development expenses | 36.3 | 41.4 | (5.1 | ) | (12.3 | )% | |||||
% of net sales | 2.6 | % | 2.8 | % | (0.2 | ) pts | |||||
Operating income | 211.8 | 201.4 | 10.4 | 5.2 | % | ||||||
% of net sales | 14.9 | % | 13.5 | % | 1.4 | pts | |||||
Loss (gain) on sale of businesses | 0.1 | (3.4 | ) | 3.5 | N.M. | ||||||
Other expense (income) | 0.9 | (12.3 | ) | 13.2 | N.M. | ||||||
Net interest expense | 14.6 | 16.7 | (2.1 | ) | (12.6 | )% | |||||
Income from continuing operations before income taxes | 196.2 | 200.4 | (4.2 | ) | (2.1 | )% | |||||
Provision for income taxes | 49.7 | 32.9 | 16.8 | 51.1 | % | ||||||
Effective tax rate | 25.3 | % | 16.4 | % | 8.9 | pts | |||||
Three months ended June 30, 2020 | Six months ended June 30, 2020 | |||
over the prior year period | over the prior year period | |||
Volume | (11.0 | )% | (5.4 | )% |
Price | 1.0 | 1.3 | ||
Core growth | (10.0 | ) | (4.1 | ) |
Acquisition (divestiture) | 0.1 | 0.7 | ||
Currency | (0.9 | ) | (1.0 | ) |
Total | (10.8 | )% | (4.4 | )% |
• | sales volume declines in both the Consumer Solutions and Industrial & Flow Technologies segments due to the impacts of the COVID-19 pandemic; and |
• | unfavorable foreign currency effects compared to the same periods of the prior year. |
• | selective increases in selling prices to mitigate inflationary cost increases; and |
• | increased sales due to the Aquion and Pelican acquisitions in February 2019 and other small acquisitions in Consumer Solutions in the fourth quarter of 2019 and first half of 2020. |
• | unfavorable mix within the commercial and infrastructure flow and residential, commercial, and industrial filtration businesses; |
• | higher freight and labor costs due to supply chain constraints in our pool business; and |
• | inflationary increases related to labor costs and certain raw materials. |
• | selective increases in selling prices to mitigate impacts of inflation; and |
• | increased productivity due to cost actions such as temporary furloughs and hiring freezes in response to the COVID-19 pandemic driving manufacturing efficiencies and lower operating expenses. |
• | asset impairment of $18.2 million in the first half of 2019 that did not occur in 2020; |
• | reduction in travel and entertainment, trade show and advertising expenses due to the COVID-19 pandemic; |
• | lower sales incentive expense in line with decreased sales in our water solutions business and Industrial & Flow Technologies segment; and |
• | restructuring and other costs of $3.5 million in the first half of 2020, compared to $7.8 million in the first half of 2019. |
• | cross currency swaps entered into in June 2019 and December 2019 resulting in more interest income in the second quarter and first half of 2020 than in the comparative 2019 periods; and |
• | the impact of a weaker Euro relative to the U.S. Dollar, resulting in increased interest income on the cross currency swaps during the second quarter and first half of 2020, compared to the same periods in 2019. |
• | the unfavorable impact of discrete items, including items related to the CARES Act and items related to final regulations as part of the Tax Cuts and Jobs Act of 2017 that place limitations on the deductibility of certain interest expense for U.S. tax purposes. |
• | the favorable mix of global earnings. |
Three months ended | Six months ended | ||||||||||||||||||
In millions | June 30, 2020 | June 30, 2019 | % / Point Change | June 30, 2020 | June 30, 2019 | % / Point Change | |||||||||||||
Net sales | $ | 401.2 | $ | 437.1 | (8.2 | )% | $ | 790.0 | $ | 795.3 | (0.7 | )% | |||||||
Segment income | 96.7 | 109.0 | (11.3 | )% | 181.5 | 184.2 | (1.5 | )% | |||||||||||
% of net sales | 24.1 | % | 24.9 | % | (0.8 | ) pts | 23.0 | % | 23.2 | % | (0.2 | ) pts | |||||||
Three months ended June 30, 2020 | Six months ended June 30, 2020 | |||
over the prior year period | over the prior year period | |||
Volume | (9.0 | )% | (2.8 | )% |
Price | 1.2 | 1.5 | ||
Core growth | (7.8 | ) | (1.3 | ) |
Acquisition | 0.1 | 1.2 | ||
Currency | (0.5 | ) | (0.6 | ) |
Total | (8.2 | )% | (0.7 | )% |
• | decreased demand in the residential and commercial filtration businesses as government-mandated shutdown and shelter-in-place orders and commercial closures due to the COVID-19 pandemic impacted the ability to reach customers; and |
• | unfavorable foreign currency effects compared to the same periods of the prior year. |
• | increased sales volume across all product lines in our pool business in the first quarter of 2020 due to more normal weather patterns and reduced inventory levels in the channel compared to 2019; |
• | increased sales volume across several of the product lines in our pool business in the second quarter of 2020 due to consumers increasing their pool use while sheltering-in-place due to the COVID-19 pandemic; |
• | selective increases in selling prices to mitigate impacts of inflation; and |
• | increased sales due to the Aquion and Pelican acquisitions that occurred in February 2019 and other small acquisitions in the fourth quarter of 2019 and first half of 2020. |
Three months ended June 30, 2020 | Six months ended June 30, 2020 | |||
over the prior year period | over the prior year period | |||
Growth | (1.7 | ) pts | (0.3 | ) pts |
Acquisition | 0.5 | 0.4 | ||
Inflation | (1.3 | ) | (1.4 | ) |
Productivity/Price | 1.7 | 1.1 | ||
Total | (0.8 | ) pts | (0.2 | ) pts |
• | decreased sales volumes in the second quarter of 2020 across all businesses due to the COVID-19 pandemic; |
• | lower sales volume in the higher margin commercial filtration business; |
• | higher freight and labor costs in our pool business due to supply chain constraints as a result of the COVID-19 pandemic; and |
• | inflationary increases related to labor costs and certain raw materials. |
• | impact of Aquion and Pelican acquisitions; |
• | increase in sales volume in our pool business in the first quarter of 2020 resulting in favorable sales mix; |
• | reduction in travel and entertainment, trade show and advertising expenses due to the COVID-19 pandemic and other cost reduction initiatives; and |
• | selective increases in selling prices to mitigate the impacts of inflation. |
Three months ended | Six months ended | ||||||||||||||||||
In millions | June 30, 2020 | June 30, 2019 | % / Point Change | June 30, 2020 | June 30, 2019 | % / Point Change | |||||||||||||
Net sales | $ | 311.8 | $ | 362.1 | (13.9 | )% | $ | 632.7 | $ | 692.4 | (8.6 | )% | |||||||
Segment income | 44.1 | 59.7 | (26.1 | )% | 88.8 | 100.7 | (11.8 | )% | |||||||||||
% of net sales | 14.1 | % | 16.5 | % | (2.4 | ) pts | 14.0 | % | 14.5 | % | (0.5 | ) pts | |||||||
Three months ended June 30, 2020 | Six months ended June 30, 2020 | |||
over the prior year period | over the prior year period | |||
Volume | (13.5 | )% | (8.5 | )% |
Price | 0.9 | 1.2 | ||
Core growth | (12.6 | ) | (7.3 | ) |
Currency | (1.3 | ) | (1.3 | ) |
Total | (13.9 | )% | (8.6 | )% |
• | decreased sales volume in our residential and irrigation flow businesses due to market conditions resulting from the COVID-19 pandemic; |
• | decreased sales volume in our commercial water supply and water disposal, industrial filtration and food and beverage businesses due to less project sales as a result of customers freezing their capital spending and less service and aftermarket revenue driven by reduced consumption and travel restrictions from government-mandated shutdowns and “shelter-in-place” orders due to the COVID-19 pandemic; and |
• | unfavorable foreign currency effects compared to the same periods of the prior year. |
• | sales growth in our infrastructure business as a result of strong backlog entering 2020; and |
• | selective increases in selling prices to mitigate inflationary cost increases. |
Three months ended June 30, 2020 | Six months ended June 30, 2020 | |||
over the prior year period | over the prior year period | |||
Growth | (3.7 | ) pts | (2.3 | ) pts |
Inflation | (0.8 | ) | (1.0 | ) |
Productivity/Price | 2.1 | 2.8 | ||
Total | (2.4 | ) pts | (0.5 | ) pts |
• | decreased sales volumes in our residential and irrigation flow businesses due to the COVID-19 pandemic, which resulted in decreased leverage on fixed operating expenses; |
• | decreased sales volume in our commercial water supply and water disposal, industrial filtration and food and beverage businesses due to the COVID-19 pandemic along with unfavorable mix within our industrial filtration business; and |
• | inflationary increases related to raw material and labor costs. |
• | selective increases in selling prices to mitigate inflationary cost increases; and |
• | increased productivity due to cost actions driving manufacturing efficiencies and lower operating expenses. |
Six months ended | ||||
In millions | June 30, 2020 | |||
Net sales | $ | — | ||
Gross profit | — | |||
Loss from continuing operations before taxes | (9.8 | ) | ||
Net loss of continuing operations | (9.8 | ) | ||
In millions | June 30, 2020 | December 31, 2019 | |||||
Current assets (1) | $ | 5.3 | $ | 3.6 | |||
Noncurrent assets (2) | 1,000.5 | 1,303.2 | |||||
Current liabilities (3) | 320.6 | 702.6 | |||||
Noncurrent liabilities (4) | 1,447.6 | 1,428.4 | |||||
(1) Includes assets due from non-guarantor subsidiaries of $2.4 million as of June 30, 2020 and December 31, 2019, respectively. | |||||||
(2) Includes assets due from non-guarantor subsidiaries of $988.1 million and $1,278.7 million as of June 30, 2020 and December 31, 2019, respectively. | |||||||
(3) Includes liabilities due to non-guarantor subsidiaries of $268.4 million and $648.8 million as of June 30, 2020 and December 31, 2019, respectively. | |||||||
(4) Includes liabilities due to non-guarantor subsidiaries of $454.7 million and $449.9 million as of June 30, 2020 and December 31, 2019, respectively. | |||||||
Six months ended | ||||||
In millions | June 30, 2020 | June 30, 2019 | ||||
Net cash provided by operating activities of continuing operations | $ | 266.5 | $ | 99.2 | ||
Capital expenditures of continuing operations | (30.5 | ) | (29.8 | ) | ||
Proceeds from sale of property and equipment of continuing operations | 0.1 | 0.4 | ||||
Free cash flow from continuing operations | $ | 236.1 | $ | 69.8 | ||
Net cash provided by operating activities of discontinued operations | (0.5 | ) | (2.5 | ) | ||
Free cash flow | $ | 235.6 | $ | 67.3 | ||
• | The COVID-19 pandemic has caused a global economic slowdown that may last for a potentially extended duration, and it is possible that it could cause a global recession. Deteriorating economic and political conditions caused by the COVID-19 pandemic, such as increased unemployment, decreases in capital spending, declines in consumer confidence, or economic slowdowns or recessions, could cause a decrease in demand for our products. |
• | Due to the impacts of the COVID-19 pandemic, we have experienced and expect to continue to experience reductions in customer demand for certain of our products and in several of our end-markets, including residential and commercial filtration, residential and irrigation flow, commercial flow, industrial filtration and food and beverage. |
• | The COVID-19 pandemic is adversely affecting, and is expected to continue to adversely affect, certain elements of our business (including certain elements of our operations, supply chains and distribution systems), including as a result of impacts associated with required, preventive and precautionary measures that we, other businesses, our communities and governments are taking. These impacts include requiring employees to work from home or not go into their offices or plants, limiting the number of employees attending meetings, reducing the number of people in our sites at any one time, reducing employee travel and adopting other employee safety measures. These measures also may impact our ability to meet production demands or requests and may delay our new product introductions depending on employee attendance or ability to continue to work. |
• | If the COVID-19 pandemic continues and economic conditions worsen, we expect to experience additional adverse impacts on our operational and commercial activities, customer orders and our collections of accounts receivable, which may be material, and it remains uncertain the impact on future operational and commercial activities, customer orders, and collections even if economic conditions begin to improve. |
• | Government or regulatory responses to the COVID-19 pandemic have and are likely to continue to negatively impact our business. During the first and second quarters of 2020, mandatory lockdowns or other restrictions on operations in some countries temporarily disrupted our ability to manufacture or distribute our products in some of these markets. Continuation or expansion of these disruptions could materially adversely impact our operations and results. In addition to existing travel restrictions, jurisdictions may continue to close borders, impose prolonged quarantines and further restrict travel and business activity, which could significantly impact our ability to support our operations and customers, meet demand, develop new products, ship our backlog and also impact the ability of our employees to get to their workplaces to produce products and services, or significantly hamper our products from moving through the supply chain. |
• | The impacts of the COVID-19 pandemic may limit our ability to reduce our overall operating costs. We have experienced increased costs relating to our efforts to mitigate the impact of the COVID-19 pandemic through enhanced sanitization procedures and social-distancing measures we have enacted and will likely continue to enact at our locations around the world in an effort to protect our employees’ health and well-being. |
• | The COVID-19 pandemic has disrupted and is expected to continue to disrupt our operations, global supply chain and routes to market or those of our suppliers or their suppliers. These disruptions or our failure to effectively respond to them have increased and may continue to increase product, distribution or labor costs or cause delays in delivering our backlog or may cause an inability to deliver products to our customers or meet customer demand. |
• | Disruptions or uncertainties related to the COVID-19 pandemic for a sustained period of time could result in delays or modifications to some of our strategic plans and initiatives and hinder our ability to achieve our growth targets. |
• | The COVID-19 pandemic has increased volatility and pricing in and disrupted the capital markets and commercial paper markets, and volatility is likely to continue. We might not be able to continue to access preferred sources of liquidity when we would like, and our borrowing costs could increase. |
• | Actions we have taken or may take, or decisions we have made or may make, as a consequence of the COVID-19 pandemic, may result in legal claims or litigation against us. |
(a) | (b) | (c) | (d) | |||||||
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Dollar value of shares that may yet be purchased under the plans or programs | ||||||
April 1 - April 25 | 7,801 | $ | 31.12 | — | $ | 134,718,028 | ||||
April 26 - May 23 | 20,417 | 35.05 | — | 134,718,028 | ||||||
May 24 - June 30 | 235 | 37.65 | — | 134,718,028 | ||||||
Total | 28,453 | — | ||||||||
(a) | The purchases in this column include 7,801 shares for the period April 1 - April 25, 20,417 shares for the period April 26 - May 23 and 235 shares for the period May 24 - June 30 deemed surrendered to us by participants in our equity incentive plans to satisfy the exercise price or withholding of tax obligations related to the exercise of stock options and vesting of restricted and performance shares. |
(b) | The average price paid in this column includes shares deemed surrendered to us by participants in our equity incentive plans to satisfy the exercise price for the exercise price of stock options and withholding tax obligations due upon stock option exercises and vesting of restricted and performance shares. |
(c) | The number of shares in this column represents the number of shares repurchased as part of our publicly announced plans to repurchase our ordinary shares up to the maximum dollar limit authorized by the Board of Directors, discussed below. |
(d) | In May 2018, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $750.0 million. The 2018 authorization expires on May 31, 2021. As of June 30, 2020, we had $134.7 million available for share repurchases under this authorization. From time to time, we may enter into a Rule 10b5-1 trading plan for the purpose of repurchasing shares under this authorization. |
Eighth Supplemental Indenture, dated as of June 22, 2020, among Pentair Finance S.à r.l., Pentair plc, Pentair Investments Switzerland GmbH and Wells Fargo Bank National Association as Trustee. | ||
Seventh Supplemental Indenture, dated as of June 22, 2020, among Pentair Finance S.à r.l., Pentair plc, Pentair Investments Switzerland GmbH and U.S. Bank National Association as Trustee. | ||
Pentair plc 2020 Share and Incentive Plan (Incorporated by reference to Appendix B to the Company’s Definitive Proxy Statement on Schedule 14A filed on March 20, 2020 (File No. 001-11625)). | ||
Form of Key Executive Employment and Severance Agreement for Robert P. Fishman, Jerome O. Pedretti, and Mario R. D’Ovidio (Incorporated by reference to Exhibit 10.3 in the Quarterly Report on Form 10-Q of Pentair plc for the quarter ended June 30, 2018 (File No. 001-11625)). | ||
List of Guarantors and Subsidiary Issuers of Guaranteed Securities. | ||
Certification of Chief Executive Officer. | ||
Certification of Chief Financial Officer. | ||
Certification of Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
101 | The following materials from Pentair plc’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 are filed herewith, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June, 2020 and 2019, (ii) the Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019, (iii) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019, (iv) the Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2020 and 2019, and (v) Notes to Condensed Consolidated Financial Statements. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document. | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |
Pentair plc | ||
Registrant | ||
By | /s/ Robert P. Fishman | |
Robert P. Fishman | ||
Executive Vice President, Chief Financial Officer and Chief Accounting Officer | ||
Name of Guarantor | Jurisdiction of Incorporation |
Pentair plc | Ireland |
1. | I have reviewed this quarterly report on Form 10-Q of Pentair plc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | July 23, 2020 | /s/ John L. Stauch |
John L. Stauch | ||
President and Chief Executive Officer | ||
1. | I have reviewed this quarterly report on Form 10-Q of Pentair plc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | July 23, 2020 | /s/ Robert P. Fishman |
Robert P. Fishman | ||
Executive Vice President, Chief Financial Officer and Chief Accounting Officer | ||
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
Date: | July 23, 2020 | /s/ John L. Stauch |
John L. Stauch | ||
President and Chief Executive Officer | ||
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
Date: | July 23, 2020 | /s/ Robert P. Fishman |
Robert P. Fishman | ||
Executive Vice President, Chief Financial Officer and Chief Accounting Officer | ||
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Accounts and notes receivable, allowances | $ 8.8 | $ 10.3 |
| Ordinary shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
| Common stock authorized (in shares) | 426,000,000 | 426,000,000 |
| Common shares issued (in shares) | 165,900,000 | 168,300,000 |
Basis of Presentation and Responsibility for Interim Financial Statements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||
| Basis of Presentation and Responsibility for Interim Financial Statements | Basis of Presentation and Responsibility for Interim Financial Statements The accompanying unaudited condensed consolidated financial statements of Pentair plc and its subsidiaries (“we,” “us,” “our,” “Pentair,” or the “Company”) have been prepared following the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the United States of America (“GAAP”) can be condensed or omitted. We are responsible for the unaudited condensed consolidated financial statements included in this document. The financial statements include all normal recurring adjustments that are considered necessary for the fair presentation of our financial position and operating results. As these are condensed financial statements, one should also read our consolidated financial statements and notes thereto, which are included in our Annual Report on Form 10-K for the year ended December 31, 2019. Revenues, expenses, cash flows, assets and liabilities can and do vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be indicative of those for a full year. In March 2020, the World Health Organization declared the novel coronavirus 2019 (“COVID-19”) a global pandemic. The COVID-19 pandemic continues to spread throughout the United States (“U.S.”) and the world, with the continued potential for significant impact. The COVID-19 pandemic has had and may continue to have an unfavorable impact on certain parts of our business. The broader implications of the COVID-19 pandemic on our business, financial condition and results of operations remain uncertain and will depend on certain developments, including the duration and severity of the COVID-19 pandemic, its impact on our customers and suppliers and the range of governmental and community reactions to the pandemic. We may continue to experience reduced customer demand or constrained supply that could materially adversely impact our business, financial condition, results of operations, liquidity and cash flows in future periods. Our fiscal year ends on December 31. We report our interim quarterly periods on a calendar quarter basis. Adoption of new accounting standards On January 1, 2020, we adopted Accounting Standards Update No. 2016-13 “Financial Instruments-Credit Losses” and the related amendments (the “new standard”). The new standard changes the methodology used to measure credit losses for certain financial instruments and financial assets, including trade receivables. The approach utilizes an expected credit loss model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of an asset, which may result in earlier recognition of credit losses than under the previous accounting standards. Under the new standard, we record an allowance for credit losses, reducing our trade receivables balance to an amount we estimate is collectible from our customers. The estimates used in determining the allowance for credit losses are based on historical collection experience, including write-offs and recoveries, periodic credit evaluations of our customers’ financial situation, and current circumstances as well as reasonable and supportable forecasts of future economic conditions. The adoption of this new standard did not have a material impact on our consolidated financial statements. The following table summarizes the activity in the allowance for credit losses for the six months ended June 30, 2020:
|
||||||||||||||||||||||||||||||||||||
Revenue |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | Revenue We disaggregate our revenue from contracts with customers by segment, geographic location and vertical, as we believe these best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Refer to Note 14 for revenue disaggregated by segment. Geographic net sales information, based on geographic destination of the sale, was as follows:
Vertical net sales information was as follows:
Performance obligations On June 30, 2020, we had $55.6 million of remaining performance obligations on contracts with an original expected duration of one year or more. We expect to recognize the majority of our remaining performance obligations on these contracts within the next 12 to 18 months. Contract assets and liabilities Contract assets and liabilities consisted of the following:
The $12.0 million increase in net contract assets from December 31, 2019 to June 30, 2020 was primarily the result of timing of milestone payments and impact of foreign currency fluctuations. Approximately 60% of our contract liabilities at December 31, 2019 were recognized in revenue in the first half of 2020. There were no impairment losses recognized on our contract assets for the three or six months ended June 30, 2020.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Business Combinations [Abstract] | |
| Acquisitions | Acquisitions In February 2019, as part of Consumer Solutions, we completed the acquisitions of Aquion, Inc. (“Aquion”) and Pelican Water Systems (“Pelican”) for $163.4 million and $121.1 million, respectively, in cash, net of cash acquired and final working capital true-ups. For Aquion, the excess of purchase price over tangible net assets and identified intangible assets acquired has been allocated to goodwill in the amount of $101.9 million, $4.6 million of which is expected to be deductible for income tax purposes. Identifiable intangible assets acquired as part of the Aquion acquisition include $15.7 million of indefinite-lived trade name intangible assets and $78.8 million of definite-lived customer relationships with an estimated useful life of 15 years. For Pelican, the excess purchase price over tangible net assets acquired has been allocated to goodwill in the amount of $118.0 million, $7.6 million of which is expected to be deductible for income tax purposes. During the first half of 2020, our Consumer Solutions reporting segment completed acquisitions with purchase prices totaling $28.5 million in cash, net of cash acquired. The pro forma impact of these acquisitions is not material.
|
Share Plans |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share Plans | Share Plans In May 2020, the Pentair plc 2020 Share and Incentive Plan (“2020 Share Plan”) was approved during the Annual General Meeting of Shareholders. The Pentair plc 2012 Stock and Incentive Plan (“2012 Stock Plan”) terminated upon the approval of the 2020 Share Plan, although awards outstanding under the 2012 Stock Plan continue in effect. Beginning May 5, 2020, all share-based compensation grants were made under the 2020 Share Plan. The 2020 Share Plan authorizes the issuance of 3.3 million of our ordinary shares, plus the number of shares reserved under the 2012 Stock Plan that were not the subject of outstanding awards as of the date the 2020 Share Plan became effective, which was 2.5 million shares, plus certain shares that would become available under the 2012 Stock Plan if it had remained in effect. The shares may be issued as new shares or from shares held in treasury. Our practice is to settle equity-based awards by issuing new shares. The 2020 Share Plan terminates on the date all shares reserved for issuance have been issued. The 2020 Share Plan allows for the granting to our employees, consultants and directors of stock options, stock appreciation rights, performance share units, restricted shares, restricted stock units, deferred stock rights, incentive awards, dividend equivalent units and other equity-based awards. The 2020 Share Plan is administered by our compensation committee (the “Committee”), which is made up of independent members of our Board of Directors. Employees eligible to receive awards under the 2020 Share Plan are managerial, administrative or professional employees. The Committee has the authority to select the recipients of awards, determine the type and size of awards, establish certain terms and conditions of award grants and take certain other actions as permitted under the 2020 Share Plan. The 2020 Share Plan prohibits the Committee from re-pricing awards or canceling and reissuing awards at lower prices. Total share-based compensation expense for the three and six months ended June 30, 2020 and 2019 was as follows:
In the first quarter of 2020, we issued our annual share-based compensation grants under the 2012 Stock Plan to eligible employees. The total number of awards issued was approximately 0.8 million, of which 0.3 million were restricted stock units (“RSUs”), 0.4 million were stock options and 0.1 million were performance share units (“PSUs”). The weighted-average grant date fair value of the RSUs, stock options and PSUs issued was $42.77, $9.58, and $45.40, respectively. We estimated the fair value of each stock option award issued in the annual share-based compensation grant using a Black-Scholes option pricing model, modified for dividends and using the following assumptions:
These estimates require us to make assumptions based on historical results, observance of trends in our share price, changes in option exercise behavior, future expectations and other relevant factors. If other assumptions had been used, share-based compensation expense, as calculated and recorded under the accounting guidance, could have been affected. We based the expected life assumption on historical experience as well as the terms and vesting periods of the options granted. For purposes of determining expected share price volatility, we considered a rolling average of historical volatility measured over a period approximately equal to the expected option term. The risk-free interest rate for periods that coincide with the expected life of the options is based on the U.S. Treasury Department yield curve in effect at the time of grant.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring | Restructuring During the six months ended June 30, 2020 and the year ended December 31, 2019, we initiated and continued execution of certain business restructuring initiatives aimed at reducing our fixed cost structure and realigning our business, including the reduction in headcount of approximately 100 employees and 375 employees, respectively. Restructuring-related costs within Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income included the following:
Restructuring costs by reportable segment were as follows:
Activity related to accrued severance and related costs recorded in Other current liabilities in the Condensed Consolidated Balance Sheets is summarized as follows for the six months ended June 30, 2020:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share | Earnings Per Share Basic and diluted earnings per share were calculated as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure Supplemental Balance Sheet Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Balance Sheet Information | Supplemental Balance Sheet Information
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Identifiable Intangible Assets |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets The changes in the carrying amount of goodwill by reportable segment were as follows:
Identifiable intangible assets consisted of the following:
Identifiable intangible asset amortization expense was $7.0 million and $8.3 million for the three months ended June 30, 2020 and 2019, respectively, and $14.6 million and $16.5 million for the six months ended June 30, 2020 and 2019, respectively. Estimated future amortization expense for identifiable intangible assets during the remainder of 2020 and the next five years is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | Debt Debt and the average interest rates on debt outstanding were as follows:
In April 2018, Pentair, Pentair Investments Switzerland GmbH (“PISG”), Pentair Finance S.à r.l (“PFSA“) and Pentair, Inc. entered into a credit agreement, providing for an $800.0 million senior unsecured revolving credit facility with a term of five years (the “Senior Credit Facility”), with Pentair and PISG as guarantors and PFSA and Pentair, Inc. as borrowers. In June 2020, Pentair assumed the PISG guarantee. The Senior Credit Facility has a maturity date of April 25, 2023. Borrowings under the Senior Credit Facility bear interest at a rate equal to an adjusted base rate or the London Interbank Offered Rate, plus, in each case, an applicable margin. The applicable margin is based on, at PFSA’s election, Pentair’s leverage level or PFSA’s public credit rating. In May 2019, PFSA executed an increase of the Senior Credit Facility by $100.0 million for a total commitment up to $900.0 million in the aggregate. In December 2019, the Senior Credit Facility was amended to provide for the extension of term loans in an aggregate amount of $200.0 million (the “Term Loans”). The Term Loans are in addition to the Senior Credit Facility commitment. In addition, PFSA has the option to further increase the Senior Credit Facility in an aggregate amount of up to $300.0 million, through a combination of increases to the total commitment amount of the Senior Credit Facility and/or one or more tranches of term loans in addition to the Term Loans, subject to customary conditions, including the commitment of the participating lenders. PFSA is authorized to sell short-term commercial paper notes to the extent availability exists under the Senior Credit Facility. PFSA uses the Senior Credit Facility as back-up liquidity to support 100% of commercial paper outstanding. PFSA had no commercial paper outstanding as of June 30, 2020 and $117.8 million as of December 31, 2019, all of which was classified as long-term debt as we have the intent and the ability to refinance such obligations on a long-term basis under the Senior Credit Facility. In March 2020, the commercial paper market began to experience high levels of volatility due to uncertainty related to the COVID-19 pandemic. The volatility impacted both market access to and pricing of commercial paper. As a cost mitigation action, we withdrew our credit ratings to access the commercial paper market in the second quarter of 2020 and continued to use the revolving credit facility, along with cash generated from operations, to fund our general operations. As of June 30, 2020, total availability under the Senior Credit Facility was $763.5 million. Our debt agreements contain various financial covenants, but the most restrictive covenants are contained in the Senior Credit Facility. The Senior Credit Facility contains covenants requiring us not to permit (i) the ratio of our consolidated debt (net of our consolidated unrestricted cash in excess of $5.0 million but not to exceed $250.0 million) to our consolidated net income (excluding, among other things, non-cash gains and losses) before interest, taxes, depreciation, amortization and non-cash share-based compensation expense (“EBITDA”) on the last day of any period of four consecutive fiscal quarters to exceed 3.75 to 1.00 (the “Leverage Ratio”) and (ii) the ratio of our EBITDA to our consolidated interest expense, for the same period to be less than 3.00 to 1.00 as of the end of each fiscal quarter. For purposes of the Leverage Ratio, the Senior Credit Facility provides for the calculation of EBITDA giving pro forma effect to certain acquisitions, divestitures and liquidations during the period to which such calculation relates. In addition to the Senior Credit Facility, we have various other credit facilities with an aggregate availability of $20.9 million, of which there were no outstanding borrowings at June 30, 2020. Borrowings under these credit facilities bear interest at variable rates. We have $177.8 million aggregate principal amount of fixed rate senior notes maturing in the next twelve months. We classified this debt as long-term as of June 30, 2020 as we have the intent and ability to refinance such obligation on a long-term basis under the Senior Credit Facility. Debt outstanding, excluding unamortized issuance costs and discounts, at June 30, 2020 matures on a calendar year basis as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Financial Instruments |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivatives and Financial Instruments | Derivatives and Financial Instruments Derivative financial instruments We are exposed to market risk related to changes in foreign currency exchange rates. To manage the volatility related to this exposure, we periodically enter into a variety of derivative financial instruments. Our objective is to reduce, where it is deemed appropriate to do so, fluctuations in earnings and cash flows associated with changes in foreign currency exchange rates. The derivative contracts contain credit risk to the extent that our bank counterparties may be unable to meet the terms of the agreements. The amount of such credit risk is generally limited to the unrealized gains, if any, in such contracts. Such risk is minimized by limiting those counterparties to major financial institutions of high credit quality. Foreign currency contracts We conduct business in various locations throughout the world and are subject to market risk due to changes in the value of foreign currencies in relation to our reporting currency, the U.S. dollar. We manage our economic and transaction exposure to certain market-based risks through the use of foreign currency derivative financial instruments. Our objective in holding these derivatives is to reduce the volatility of net earnings and cash flows associated with changes in foreign currency exchange rates. The majority of our foreign currency contracts have an original maturity date of less than one year. At June 30, 2020 and December 31, 2019, we had outstanding foreign currency derivative contracts with gross notional U.S. dollar equivalent amounts of $17.9 million and $17.0 million, respectively. The impact of these contracts on the Condensed Consolidated Statements of Operations and Comprehensive Income was not material for any period presented. Cross Currency Swaps At June 30, 2020 and December 31, 2019, we had outstanding cross currency swap agreements with a combined notional amount of $785.3 million and $770.0 million, respectively. The agreements are accounted for as either cash flow hedges, to hedge foreign currency fluctuations on certain intercompany debt, or as net investment hedges to manage our exposure to fluctuations in the Euro-U.S. Dollar exchange rate. We had deferred foreign currency gains of $19.0 million and deferred currency losses of $1.8 million at June 30, 2020 and December 31, 2019, respectively, in Accumulated other comprehensive loss associated with our cross currency swap activity. Fair value measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date:
In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Fair value of financial instruments The following methods were used to estimate the fair values of each class of financial instruments:
The recorded amounts and estimated fair values of total debt, excluding unamortized issuance costs and discounts, were as follows:
Financial assets and liabilities measured at fair value on a recurring and nonrecurring basis were as follows:
(1) During the year ended December 31, 2019, we recorded impairment charges for cost method investments in the amount of $21.2 million, of which $2.9 million and $18.2 million was recorded in the three and six months ended June 30, 2019, respectively. A valuation method using unobservable inputs was utilized to determine the fair value. We wrote the balance of the cost method investments to zero.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes We manage our affairs so that we are centrally managed and controlled in the United Kingdom (“U.K.”) and therefore have our tax residency in the U.K. The provision for income taxes consists of provisions for the U.K. and international income taxes. We operate in an international environment with operations in various locations outside the U.K. Accordingly, the consolidated income tax rate is a composite rate reflecting the earnings in the various locations and the applicable rates. The effective income tax rate for the six months ended June 30, 2020 was 25.3%, compared to 16.4% for the six months ended June 30, 2019. We continue to actively pursue initiatives to reduce our effective tax rate. The tax rate in any quarter can be affected positively or negatively by adjustments that are required to be reported in the specific quarter of resolution. On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in response to the COVID-19 pandemic. The CARES Act contains numerous income tax provisions, such as relaxing limitations on the deductibility of interest and the ability to carryback net operating losses arising in taxable years from 2018 through 2020. The CARES Act provides positive cash benefits of approximately $28.7 million, offset by an increase to our 2020 annual effective tax rate of approximately 1.0% and $5.7 million in discrete tax items recorded in the first half of 2020 mainly attributable to base erosion and anti-abuse tax related to 2019. In April 2020, the Internal Revenue Service released final regulations as part of the Tax Cuts and Jobs Act of 2017 that place limitations on the deductibility of certain interest expense for U.S. tax purposes. These regulations resulted in discrete tax expense of approximately $14.1 million in the second quarter of 2020, as well as an increase to our 2020 annual effective tax rate of approximately 0.5%. The liability for uncertain tax positions was $47.2 million and $47.4 million at June 30, 2020 and December 31, 2019, respectively. We record penalties and interest related to unrecognized tax benefits in Provision for income taxes and Net interest expense, respectively, on the Condensed Consolidated Statements of Operations and Comprehensive Income, which is consistent with our past practices.
|
Benefit Plans |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Benefit Plans | Benefit Plans Components of net periodic benefit cost for our pension plans for the three and six months ended June 30, 2020 and 2019 were as follows:
Components of net periodic benefit cost for our other post-retirement plans for the three and six months ended June 30, 2020 and 2019 were not material.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Equity [Abstract] | |
| Shareholders' Equity | Shareholders’ Equity Share repurchases In May 2018, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $750.0 million. The authorization expires on May 31, 2021. During the six months ended June 30, 2020, we repurchased 3.0 million of our shares for $115.2 million. As of June 30, 2020, we had $134.7 million available for share repurchases under this authorization. In March 2020, to enhance our liquidity position in response to the COVID-19 pandemic, we elected to temporarily suspend share repurchases under our existing share repurchase program. The existing program remains authorized by the Board of Directors, and we may resume share repurchases in the future at any time, depending upon market conditions, our capital needs and other factors. Dividends payable On May 5, 2020, the Board of Directors declared a quarterly cash dividend of $0.19, payable on August 7, 2020 to shareholders of record at the close of business on July 24, 2020. As a result, the balance of dividends payable included in Other current liabilities on our Condensed Consolidated Balance Sheets was $31.5 million at June 30, 2020, compared to $32.0 million at December 31, 2019.
|
Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Information | Segment Information Effective January 1, 2020, we reorganized our business segments to better support our organization with our strategies and to better align with our customer base, resulting in a change to our reporting segments. All prior period amounts related to the segment change have been retrospectively reclassified to conform to the new presentation. As part of this reorganization, the legacy Aquatic Systems, Flow Technologies, and Filtration Solutions segments were realigned into two reportable business segments:
We evaluate performance based on net sales and segment income (loss) and use a variety of ratios to measure performance of our reporting segments. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. Segment income (loss) represents equity income of unconsolidated subsidiaries and operating income exclusive of intangible amortization, certain acquisition related expenses, costs of restructuring activities, impairments and other unusual non-operating items. Financial information by reportable segment is as follows:
The following table presents a reconciliation of consolidated segment income to consolidated income from continuing operations before income taxes:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
6 Months Ended | ||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||
| Commitments and Contingencies | Commitments and Contingencies Warranties and guarantees In connection with our disposition of businesses, product lines and assets, we often provide representations, warranties and indemnities to cover purchasers for various potential liabilities relating to the sold businesses, product lines and assets, such as unknown damages or liabilities relating to the assets and pre-closing tax, product liability, warranty, environmental, or other obligations. The subject matter, amounts and duration of any such indemnification obligations vary for each type of liability indemnified and may vary widely from transaction to transaction. Generally, the maximum obligations under such indemnifications are not explicitly stated and as a result, the overall amount of these obligations cannot be reasonably estimated due to their inchoate and unknown nature. Historically, we have not made significant payments for these indemnifications. We believe that if we were to incur a loss in any of these matters, the loss would not have a material adverse effect on our financial position, results of operations or cash flows. We recognize, at the inception of a guarantee, a liability for the fair value of the obligation undertaken in issuing the guarantee. We provide service and warranty policies on our products. Liability under service and warranty policies is based upon a review of historical warranty and service claim experience. Adjustments are made to accruals as claim data and historical experience warrant. The changes in the carrying amount of service and product warranties of continuing operations for the six months ended June 30, 2020 were as follows:
Stand-by letters of credit, bank guarantees and bonds In certain situations, Tyco International Ltd., Pentair Ltd.’s former parent company (“Tyco”), guaranteed performance by the flow control business of Pentair Ltd. (“Flow Control”) to third parties or provided financial guarantees for financial commitments of Flow Control. In situations where Flow Control and Tyco were unable to obtain a release from these guarantees in connection with the spin-off of Flow Control from Tyco, we will indemnify Tyco for any losses it suffers as a result of such guarantees. In the ordinary course of business, we are required to commit to bonds, letters of credit and bank guarantees that require payments to our customers for any non-performance. The outstanding face value of these instruments fluctuates with the value of our projects in process and in our backlog. In addition, we issue financial stand-by letters of credit primarily to secure our performance to third parties under self-insurance programs. As of June 30, 2020 and December 31, 2019, the outstanding value of bonds, letters of credit and bank guarantees totaled $97.9 million and $91.3 million, respectively.
|
||||||||||||||||||||||||||||
Basis of Presentation and Responsibility for Interim Financial Statements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||
| Schedule of Allowance for Credit Losses | The following table summarizes the activity in the allowance for credit losses for the six months ended June 30, 2020:
|
||||||||||||||||||||||||||||||||||||
Revenue (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disaggregation of Revenue | Geographic net sales information, based on geographic destination of the sale, was as follows:
Vertical net sales information was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contract with Customer, Asset and Liability | Contract assets and liabilities Contract assets and liabilities consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Compensation Expense | Total share-based compensation expense for the three and six months ended June 30, 2020 and 2019 was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | We estimated the fair value of each stock option award issued in the annual share-based compensation grant using a Black-Scholes option pricing model, modified for dividends and using the following assumptions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Related Costs | Restructuring-related costs within Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income included the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Costs By Segment | Restructuring costs by reportable segment were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Accrual Activity Recorded on Consolidated Balance Sheets | Activity related to accrued severance and related costs recorded in Other current liabilities in the Condensed Consolidated Balance Sheets is summarized as follows for the six months ended June 30, 2020:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure Supplemental Balance Sheet Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Supplemental Balance Sheet Information |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Identifiable Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by reportable segment were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Detail of Identifiable Intangible Assets | Identifiable intangible assets consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Estimated Future Amortization Expense for Identifiable Intangible Assets | Estimated future amortization expense for identifiable intangible assets during the remainder of 2020 and the next five years is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt and Average Interest Rates on Debt Outstanding | Debt and the average interest rates on debt outstanding were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Outstanding Matures on Calendar Year Basis | Debt outstanding, excluding unamortized issuance costs and discounts, at June 30, 2020 matures on a calendar year basis as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring and nonrecurring basis were as follows:
(1) During the year ended December 31, 2019, we recorded impairment charges for cost method investments in the amount of $21.2 million, of which $2.9 million and $18.2 million was recorded in the three and six months ended June 30, 2019, respectively. A valuation method using unobservable inputs was utilized to determine the fair value. We wrote the balance of the cost method investments to zero.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Recorded Amounts and Estimated Fair Values of Long-term Debt and Derivative Financial Instruments | The recorded amounts and estimated fair values of total debt, excluding unamortized issuance costs and discounts, were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Net Benefit Costs | Components of net periodic benefit cost for our pension plans for the three and six months ended June 30, 2020 and 2019 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Information by Reportable Segment | Financial information by reportable segment is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table presents a reconciliation of consolidated segment income to consolidated income from continuing operations before income taxes:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||
| Changes in Carrying Amount of Service and Product Warranties | The changes in the carrying amount of service and product warranties of continuing operations for the six months ended June 30, 2020 were as follows:
|
||||||||||||||||||||||||||||
Basis of Presentation and Responsibility for Interim Financial Statements - Adoption of New Accounting Standards (Details) $ in Millions |
6 Months Ended |
|---|---|
|
Jun. 30, 2020
USD ($)
| |
| Accounting Policies [Abstract] | |
| Beginning balance | $ 10.3 |
| Bad debt expense | (0.3) |
| Write-offs, net of recoveries | (1.0) |
| Other | (0.2) |
| Ending balance | $ 8.8 |
Revenue - Geographic Net Sales Information by Segment (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | $ 713.3 | $ 799.5 | $ 1,423.3 | $ 1,488.4 |
| Residential | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | 439.7 | 451.0 | 855.5 | 834.6 |
| Commercial | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | 124.4 | 170.7 | 265.8 | 321.4 |
| Industrial | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | 149.2 | 177.8 | 302.0 | 332.4 |
| U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | 482.7 | 511.1 | 946.7 | 937.1 |
| Western Europe | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | 84.9 | 106.9 | 188.7 | 211.2 |
| Developing | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | 100.4 | 129.0 | 194.9 | 237.9 |
| Other Developed | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Net sales | $ 45.3 | $ 52.5 | $ 93.0 | $ 102.2 |
Revenue - Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 $ in Millions |
Jun. 30, 2020
USD ($)
|
|---|---|
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
| Revenue, remaining performance obligation | $ 55.6 |
| Minimum | |
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
| Revenue, remaining performance obligation period | 12 months |
| Maximum | |
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
| Revenue, remaining performance obligation period | 18 months |
Revenue - Additional Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended |
|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2020 |
|
| Revenue from Contract with Customer [Abstract] | ||
| Change in net contract assets | $ 12,000,000.0 | |
| Percent of contract liabilities | 60.00% | |
| Impairment losses on contract assets | $ 0 | $ 0 |
Revenue - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions |
6 Months Ended | |
|---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
| Revenue from Contract with Customer [Abstract] | ||
| Contract assets | $ 49.5 | $ 41.0 |
| Contract liabilities | 29.1 | 32.6 |
| Net contract assets | 20.4 | $ 8.4 |
| $ Change | ||
| Contract assets | 8.5 | |
| Contract liabilities | (3.5) | |
| Net contract assets | $ 12.0 | |
| % Change | ||
| Contract assets | 20.70% | |
| Contract liabilities | (10.70%) | |
| Net contract assets | 142.90% |
Acquisitions Acquisitions (Details) - USD ($) $ in Millions |
1 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Feb. 28, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
| Business Acquisition [Line Items] | ||||
| Acquisitions, net of cash acquired | $ 28.5 | $ 284.5 | ||
| Goodwill | $ 2,302.1 | $ 2,258.3 | ||
| Aquion | ||||
| Business Acquisition [Line Items] | ||||
| Acquisitions, net of cash acquired | $ 163.4 | |||
| Goodwill | 101.9 | |||
| Business Acquisition, Goodwill, Expected Tax Deductible Amount | 4.6 | |||
| Indefinite-lived trade name intangible assets | 15.7 | |||
| Definite-lived customer relationships | $ 78.8 | |||
| Estimated useful life | 15 years | |||
| Pelican | ||||
| Business Acquisition [Line Items] | ||||
| Acquisitions, net of cash acquired | $ 121.1 | |||
| Goodwill | 118.0 | |||
| Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 7.6 | |||
Share Plans - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
| Total share-based compensation expense | $ 4.2 | $ 5.3 | $ 10.4 | $ 10.7 |
| Restricted stock units | ||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
| Total share-based compensation expense | 3.1 | 2.9 | 6.3 | 5.7 |
| Stock options | ||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
| Total share-based compensation expense | 0.6 | 1.1 | 1.6 | 2.5 |
| Performance share units | ||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
| Total share-based compensation expense | $ 0.5 | $ 1.3 | $ 2.5 | $ 2.5 |
Share Plans - Schedule of Valuation Assumptions (Details) |
3 Months Ended |
|---|---|
Mar. 31, 2020 | |
| Share-based Payment Arrangement [Abstract] | |
| Risk-free interest rate | 1.61% |
| Expected dividend yield | 1.80% |
| Expected share price volatility | 24.10% |
| Expected term (years) | 6 years 9 months 18 days |
Restructuring - Additional Information (Detail) - Person |
6 Months Ended | 12 Months Ended |
|---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
| Restructuring and Related Activities [Abstract] | ||
| Number of employees | 100 | 375 |
Restructuring - Costs Included in Selling, General & Administrative Expenses (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Restructuring Cost and Reserve [Line Items] | ||||
| Restructuring costs | $ 1.1 | $ 6.7 | $ 3.8 | $ 7.8 |
| Severance and related costs | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Restructuring costs | 1.1 | 6.4 | 3.8 | 7.5 |
| Other | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Restructuring costs | $ 0.0 | $ 0.3 | $ 0.0 | $ 0.3 |
Restructuring - Restructuring Costs By Segment (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Restructuring Cost and Reserve [Line Items] | ||||
| Restructuring costs | $ 1.1 | $ 6.7 | $ 3.8 | $ 7.8 |
| Consumer Solutions | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Restructuring costs | 1.4 | 2.3 | 2.0 | 3.4 |
| Industrial & Flow Technologies | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Restructuring costs | (0.3) | 3.3 | 0.6 | 3.2 |
| Other | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Restructuring costs | $ 0.0 | $ 1.1 | $ 1.2 | $ 1.2 |
Restructuring - Accrual Activity (Detail) $ in Millions |
6 Months Ended |
|---|---|
|
Jun. 30, 2020
USD ($)
| |
| Restructuring Reserve [Roll Forward] | |
| Beginning balance | $ 16.2 |
| Costs incurred | 3.8 |
| Cash payments and other | (7.3) |
| Ending balance | $ 12.7 |
Goodwill and Other Identifiable Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Detail) $ in Millions |
6 Months Ended |
|---|---|
|
Jun. 30, 2020
USD ($)
| |
| Goodwill [Roll Forward] | |
| Beginning Balance | $ 2,258.3 |
| Purchase Accounting Adjustments | 25.8 |
| Goodwill, Acquired During Period | 14.4 |
| Foreign currency translation/other | 3.6 |
| Ending Balance | 2,302.1 |
| Consumer Solutions | |
| Goodwill [Roll Forward] | |
| Beginning Balance | 1,501.4 |
| Purchase Accounting Adjustments | 14.4 |
| Goodwill, Acquired During Period | 25.8 |
| Foreign currency translation/other | 1.2 |
| Ending Balance | 1,542.8 |
| Industrial & Flow Technologies | |
| Goodwill [Roll Forward] | |
| Beginning Balance | 756.9 |
| Foreign currency translation/other | 2.4 |
| Ending Balance | $ 759.3 |
Goodwill and Other Identifiable Intangible Assets - Detail of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Acquired Intangible Assets By Major Class [Line Items] | ||
| Cost | $ 461.7 | $ 460.4 |
| Accumulated amortization | (310.4) | (294.6) |
| Net | 151.3 | 165.8 |
| Net, indefinite-life intangibles | 174.1 | 173.4 |
| Cost | 635.8 | 633.8 |
| Net | 325.4 | 339.2 |
| Customer relationships | ||
| Acquired Intangible Assets By Major Class [Line Items] | ||
| Cost | 419.3 | 418.1 |
| Accumulated amortization | (283.3) | (269.1) |
| Net | 136.0 | 149.0 |
| Patented Technology [Member] | ||
| Acquired Intangible Assets By Major Class [Line Items] | ||
| Cost | 42.4 | 42.3 |
| Accumulated amortization | (27.1) | (25.5) |
| Net | $ 15.3 | $ 16.8 |
Goodwill and Other Identifiable Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Goodwill and Intangible Assets Disclosure [Abstract] | ||||
| Intangible asset amortization expense | $ 7.0 | $ 8.3 | $ 14.6 | $ 16.5 |
Goodwill and Other Identifiable Intangible Assets - Estimated Future Amortization Expense for Identifiable Intangible Assets (Detail) $ in Millions |
Jun. 30, 2020
USD ($)
|
|---|---|
| Goodwill and Intangible Assets Disclosure [Abstract] | |
| Q3 - Q4 2020 | $ 13.2 |
| 2021 | 22.6 |
| 2022 | 15.7 |
| 2023 | 13.1 |
| 2024 | 12.6 |
| 2025 | $ 12.6 |
Debt - Debt Outstanding Matures on Calendar Year Basis (Detail) $ in Millions |
Jun. 30, 2020
USD ($)
|
|---|---|
| Debt Disclosure [Abstract] | |
| Q3 - Q4 2020 | $ 74.0 |
| 2021 | 103.8 |
| 2022 | 88.3 |
| 2023 | 336.5 |
| 2024 | 0.0 |
| 2025 | 19.3 |
| Thereafter | 400.0 |
| Total debt | $ 1,021.9 |
Derivatives and Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
|---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
| Foreign Exchange Contract [Member] | ||
| Derivative [Line Items] | ||
| Notional amount | $ 17.9 | $ 17.0 |
| Currency Swap [Member] | ||
| Derivative [Line Items] | ||
| Notional amount | 785.3 | 770.0 |
| Deferred foreign currency gain (loss) | $ 19.0 | $ 1.8 |
Derivatives and Financial Instruments - Recorded Amounts and Estimated Fair Values (Detail) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Derivative [Line Items] | ||
| Total debt | $ 1,021.9 | |
| Recorded Amount | ||
| Derivative [Line Items] | ||
| Variable rate debt | 336.5 | $ 353.6 |
| Fixed rate debt | 685.4 | 685.4 |
| Total debt | 1,021.9 | 1,039.0 |
| Fair Value | ||
| Derivative [Line Items] | ||
| Variable rate debt | 336.5 | 353.6 |
| Fixed rate debt | 741.1 | 732.2 |
| Total debt | $ 1,077.6 | $ 1,085.8 |
Income Taxes - Additional Information (Detail) $ in Millions |
1 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
|
Apr. 30, 2020
USD ($)
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019 |
Dec. 31, 2019
USD ($)
|
|
| Income Tax Disclosure [Abstract] | ||||
| Effective income tax rate | 25.30% | 16.40% | ||
| Tax benefit, CARES Act | $ 28.7 | |||
| Tax expense, base erosion and anti-abuse tax | 5.7 | |||
| Total gross liability for unrecognized tax benefits | $ 47.2 | $ 47.4 | ||
| Tax expense, Tax Cuts and Jobs Act | $ 14.1 | |||
| Effective tax rate, Tax Cuts and Jobs Act | 0.005 | 0.010 | ||
Benefit Plans (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Retirement Benefits [Abstract] | ||||
| Service cost | $ 0.8 | $ 0.7 | $ 1.6 | $ 1.4 |
| Interest cost | 0.7 | 2.7 | 1.4 | 5.4 |
| Expected return on plan assets | (0.2) | (1.7) | (0.4) | (3.4) |
| Pension settlement gain | 0.0 | 12.2 | 0.0 | 12.2 |
| Net periodic benefit cost | $ 1.3 | $ (10.5) | $ 2.6 | $ (8.8) |
Segment Information - Financial Information by Reportable Segment (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Segment Reporting Information [Line Items] | ||||
| Net sales | $ 713.3 | $ 799.5 | $ 1,423.3 | $ 1,488.4 |
| Segment income | 111.1 | 133.8 | 211.8 | 201.4 |
| Consumer Solutions | ||||
| Segment Reporting Information [Line Items] | ||||
| Net sales | 401.2 | 437.1 | 790.0 | 795.3 |
| Segment income | 96.7 | 109.0 | 181.5 | 184.2 |
| Industrial & Flow Technologies | ||||
| Segment Reporting Information [Line Items] | ||||
| Net sales | 311.8 | 362.1 | 632.7 | 692.4 |
| Segment income | 44.1 | 59.7 | 88.8 | 100.7 |
| Other | ||||
| Segment Reporting Information [Line Items] | ||||
| Net sales | 0.3 | 0.3 | 0.6 | 0.7 |
| Segment income | (16.1) | (14.6) | (34.1) | (32.1) |
| Operating Segments | ||||
| Segment Reporting Information [Line Items] | ||||
| Segment income | $ 124.7 | $ 154.1 | $ 236.2 | $ 252.8 |
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Commitments and Contingencies Disclosure [Abstract] | ||
| Letters of credit outstanding | $ 97.9 | $ 91.3 |
Commitments and Contingencies - Changes in Carrying Amount of Service and Product Warranties (Detail) $ in Millions |
6 Months Ended |
|---|---|
|
Jun. 30, 2020
USD ($)
| |
| Movement in Standard Product Warranty Accrual [Roll Forward] | |
| Beginning balance | $ 32.1 |
| Service and product warranty provision | 27.2 |
| Payments | (22.7) |
| Ending balance | $ 36.6 |